My wife and I are senior citizens. Can I claim tax sops for medical treatment under Section 80DDB?
The deduction under section 80DDB can be claimed only by the taxpayer who is a resident of India during the relevant previous year.
Ashok Shah Partner, N.A. Shah Associates replies: Cancer is covered under Rule 11DD of the income tax rules. However, deduction for medical expenses incurred on your wife's treatment under Section 80DDB of the Income-Tax Act will be capped at Rs 1 lakh. You will also need to preserve the prescription for the medical treatment. You can also claim deduction of up to Rs 50,000 for medical expenses under Section 80D(2)(c) of the Income-Tax Act. But the payments should not have been made in cash. So, you can claim a total deduction of Rs 1.5 lakh.
Also Read: Medical expenses that can be claimed as tax break under section 80DDB
I signed an agreement to purchase an under-construction flat in April 2017. The payments for this flat were made in several instalments. The final payment was made in March 2019. I will get the possession of this flat in June 2019. Meanwhile, I also signed a sale agreement for my old flat in April 2019.
Amit Maheshwari Partner, Ashok Maheshwary and Associates replies: March 2019. The sale process will be completed by April 2019. Will I have to pay tax on the LTCG made on this sale? You can avail of exemption on long-term capital gains (LTCG). According to Section 54 of the Income-Tax Act, LTCG on the sale of a house are not taxable, if a new house is purchased one year before or two years after the sale of the house, or a new house is constructed within three years of the sale of the house. As you plan to sell your old house in April 2019 and the possession of the new house will be in June 2019, the construction of the new house will be completed within three years of the sale of the old house. This makes you eligible for LTCG tax exemption.